We've written before about the impossible nature of discharging student loan debt in bankruptcy. The Project on Student Debt estimates the average debt for 2009 bachelor’s degree recipients at $24,000. Students with advanced degrees generally carry even more.Here's an article that lists a couple of creative repayment options for lawyers, teachers, primary care medical workers and even … [Read more...]
Better Business Bureau Warns about Job Hunting and Debt Relief Scams
January 31, 2011 By
People who can least afford to lose money are too frequently targeted by con artists. This video interview (below) with a Better Business Bureau executive highlights some of the prevalent scams that prey on people who are in financial difficulty.Our advice is if you are looking for employment and a company asks you to pay up front for ANYTHING, be wary. Call the Better Business Bureau in … [Read more...]
Why Your Mortgage Modification Failed
November 12, 2010 By
Sometimes when we tell prospective clients they are better off declaring bankruptcy than hoping for a mortgage modification they believe we're giving self-serving advice. Scroll to the bottom of this post for a comprehensive story from PBS's NewsHour on the modification debacle. Unemployment is the culprit Until employment improves, the housing situation will not improve. Most of the people we … [Read more...]
More Trouble with Income Tax Fixers
October 13, 2010 By
Unfortunately, companies touting their ability to "fix/lower/relieve income tax debt" are often in the business of helping themselves to the detriment of their clients.In the latest development, American Tax Relief of Beverly Hills, CA has been sued by the Federal Trade Commission (FTC) for bilking customers of some $60-100m and siphoning off some $30m for its owners. While the FTC is … [Read more...]
Small Business Owners, Beware the Credit Adviser
October 11, 2010 By
Beware the "business consultants" and "business advisers" who promise small business owners and sole proprietors that they can take care of debt problems. Over the past few years, we've seen small business owners who fall victim to such scams. Anatomy of a scam Sometimes, small business owners come to us with tremendous business debts and and tell us that they hired an "advisor" or … [Read more...]
Discharge Income Taxes in Bankruptcy?
August 30, 2010 By
In the American Bar Association Journal last week, I read about a California attorney who has been accused by the state attorney general of operating a "heartless scheme" that takes retainers from thousands of clients while doing little or nothing to help them. Yes, even lawyers can act like debt settlement companies, many of which take fees and settle no debts I have no opinion on this … [Read more...]
Expose on Debt Settlement Company
July 27, 2010 By
We've written extensively about the perils of using debt settlement companies here. Before dealing with one of these organizations, do your research. … [Read more...]
Beware Foreclosure Scams Part 1
June 7, 2010 By
The past few years have showed us that owners of homes in foreclosure may face a variety of potential pitfalls. So-called real estate investors One such pitfall is a foreclosure scam. These often take the form of solicitations from so-called real estate investors who would like to purchase the homes before the foreclosure process finalizes.The solicitations often occur by direct targeted … [Read more...]
Much-Needed Debt Settlement Regulation
May 17, 2010 By
We've written a great deal about the abuses and excesses of debt settlement operations lately.Last month federal legislation was proposed to tighten the screws on unsavory practices in this industry. It pointed out that while costs vary, "a company might charge up to 20 percent of the total debt. Fees are usually demanded upfront, even though a settlement may never be secured." Why pay … [Read more...]
How Debt Settlement Works
April 21, 2010 By
The nonprofit Consumer Credit Counseling Service of Orange County produced an excellent video on how debt settlement works -- usually against you.We've written on this topic several times on our blog as well.If you decide to hire someone to help you settle, consolidate or otherwise manage your debts, then be very wary of companies that are advertising. Most of them draft various fees from … [Read more...]